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Chicago Reaps Revenue Bonanza With Cloud Computing Tax

Sept. 5, 2019, 10:51 AM

Policy experts and lawmakers wrestling with how to best tax the digital economy take note: Chicago’s figured out how to bring in tens of millions of dollars by applying its lease tax to cloud computing.

Windy City Windfall: Chicago in 2016 adapted its existing tax code to capture revenue from new business applications of an emerging technology. It’s a one-of-a-kind solution to the thorny problem of taxing tech that’s brought nearly $90 million into the Windy City over two and a half years.

Exponential Growth: Tax collections are expected to surge as businesses continue to embrace cloud-based products. Sales of ...